TikTok and ByteDance might separate if the US agreement fails
The famous video-sharing platform TikTok is in hard waters. It is in trouble due to security risks. Several reports have indicated the news about the ban on TikTok in the US. The app has been removed from the phones of government officials. In light of this information, a recent report from Bloomberg indicates that TikTok might separate from its parent company i.e., ByteDance. It will happen if a deal between the platform and the US government falls through.
The major reason behind the label of a security threat is that TikTok is basically a Chinese company. A platform with as many ads as TikTok must gather user data in order to serve users with appropriate ads that would entice them to click. It can target its adverts more precisely the more data it gathers.
On the other hand, TikTok is a big brand company. It is available across billions of devices. In the US, it can be found on millions of devices. Such huge numbers indicate a lot of data collected from users and the US government surely doesn’t like the idea of data collection by a Chinese company.
TikTok could separate from ByteDance
As of now, the company is working in close association with the US government to mitigate concerns regarding national security. They are working on “Project Texas”. It is basically a multi-tier deal. It includes the obligation for TikTok to work with Oracle [an American company]. Oracle will host the data collected from US TikTok consumers. Besides this, Oracle will review the software of TikTok. The deal accompanies the formation of a three-person board that will keep an eye on TikTok.
Well, this deal sounds nice. It kinds of reassures certain things. But still, several lawmakers in the States have proposed several bills against TikTok. Some of them require that TikTok should separate from ByteDance. Nothing can’t be said regarding the future of this deal. Time will unveil things.
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